alcoholic beneficiary
I have a high six figure Roth IRA for which I have named my two sons as beneficiaries. One son is alcoholic. How can I organize the inheritance so that the alcoholic son (who is married with two children) could not squander his share?
Permalink Submitted by Bruce Steiner on Wed, 2012-08-01 20:02
You could leave his share to him in trust rather than outright.
You might do the same for your other son, though you could set up your other son’s trust such that he would have control over it. That would keep it out of his estate for estate tax purposes, and would better protect it against potential creditors and spouses.
For more on this, see my article on trusts as beneficiaries of retirement benefits in the March 2004 issue of BNA Tax Management’s Estates, Gifts & Trusts Journal: http://www.kkwc.com/docs/AR20041209132954.pdf .